IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Jun 2015 | Removal date: open ended
Still in force

Localisation incentive

On 4 June 2015 the Russian Government approved Decree Nr. 550. It amends Decree No. 1432 of 27 December 2012, the original decree which as of 1 January 2013 introduced rules concerning provision of subsidies for agricultural machinery.

Decree Nr. 550 has introduces the following main amendments to Decree No. 1432:

  1. Producers of agricultural machinery can obtain a state subsidy of up to 25% of the price of the agricultural machinery. When the sale of agricultural machinery involves agricultural producers registered in the Crimean, Siberian and Far Eastern Federal Districts, the subsidy will be 30% of the price of agricultural machinery. In the original Decree No.1432 the subsidised percentage of the price of the agricultural machinery was 15%.
  2. Compared to Decree No.1432, Decree Nr. 550 increases the upper bound of the subsidised machinery including tractors, harvesters, tractor seeders, potato diggers, potato sprayers and aerosol devices.
  3. Article 6 of Decree 550 contains a list of technological operations which must be performed in Russia in order the applicant for a state subsidy to be authorised to receive it. This article can be interpreted as a localisation requirement.

 
According to the text of Decree No. 550, this state initiative "will help increase the purchase accessibility of agricultural machinery and increase the volume of supply of such equipment to agricultural producers'.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

441 Agricultural or forestry machinery & parts
8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sportsground rollers.
843210 Ploughs
843221 Disc harrows
843229 Other
843230 Seeders, planters and transplanters
843240 Manure spreaders and fertiliser distributors
843280 Other machinery
843290 Parts
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 84.37.
843311 Powered, with the cutting device rotating in a horizontal plane
843319 Other
843320 Other mowers, including cutter bars for tractor mounting
843330 Other haymaking machinery
843340 Straw or fodder balers, including pickup balers
843351 Combine harvesterthreshers
843352 Other threshing machinery
843353 Root or tuber harvesting machines
843359 Other
843360 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce
843390 Parts
8701 Tractors (other than tractors of heading 87.09).
870110 Pedestrian controlled tractors
870130 Tracklaying tractors
870190 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870490 Other
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870520 Mobile drilling derricks
870530 Fire fighting vehicles
870540 Concretemixer lorries
870590 Other

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